Ask Question
2 January, 08:09

Sharpe Knife Company expects sales next year to be $1,550,000 if the economy is strong, $825,000 if the economy is steady, and $550,000 if the economy is weak. Ms. Sharpe believes there is a 30 percent probability the economy will be strong, a 40 percent probability of a steady economy, and a 30 percent probability of a weak economy. What is the expected level of sales for the next year

+4
Answers (1)
  1. 2 January, 08:33
    0
    The expected level of sales for the next year is $960000

    Explanation:

    The expected sales will be calculated based on the probabiltiy of the economic condition multiplied by sales in that economic condition.

    The expected sales for the next year will be,

    Expected sales = 1550000 * 0.3 + 825000 * 0.4 + 550000 * 0.3

    Expected Sales = $960000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Sharpe Knife Company expects sales next year to be $1,550,000 if the economy is strong, $825,000 if the economy is steady, and $550,000 if ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers